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  1. #1
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    Advice for avoiding MLM scams

    https://www.ftc.gov/tips-advice/busi...evel-marketing

    If you are looking to join an MLM as a business opportunity the FTC gives some great advice in the link above. Remember to get everything in writing and to never sign during a pitch or meeting, give yourself a couple of days to review all the information before making any decisions. Ask someone you trust who understands business to review the MLM before you join.

    If you cannot get answers to all your questions from the person recruiting you get the contact information from someone in the MLM who can answer all your questions. If it is a legitimate opportunity they will have no issues answering the questions below.

    Some great questions from the FTC to get answers in writing from the person recruiting you before joining an MLM:

    1) How much money did you make last year — that is, your income and bonuses, less your expenses?

    2) What were your expenses last year, including money you spent on training and buying products?

    3) What are your annual sales of the product?

    4) What percentage of the money you've made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?

    5) What percentage of your sales were made to distributors?

    Do not be a low information consumer, get all the information and make sure all your questions are answered. Do not be afraid to ask for tax records and notarized profit/loss statements, the person recruiting you is presenting this as a legitimate business opportunity so you should evaluate it as one.

    If they refuse to answer your questions or try to give evasive answers it is probably not a legitimate opportunity.

  2. #2
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by dank111 View Post
    https://www.ftc.gov/tips-advice/busi...evel-marketing

    If you are looking to join an MLM as a business opportunity the FTC gives some great advice in the link above. Remember to get everything in writing and to never sign during a pitch or meeting, give yourself a couple of days to review all the information before making any decisions. Ask someone you trust who understands business to review the MLM before you join.

    If you cannot get answers to all your questions from the person recruiting you get the contact information from someone in the MLM who can answer all your questions. If it is a legitimate opportunity they will have no issues answering the questions below.

    Some great questions from the FTC to get answers in writing from the person recruiting you before joining an MLM:

    1) How much money did you make last year — that is, your income and bonuses, less your expenses?

    2) What were your expenses last year, including money you spent on training and buying products?

    3) What are your annual sales of the product?

    4) What percentage of the money you've made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?

    5) What percentage of your sales were made to distributors?

    Do not be a low information consumer, get all the information and make sure all your questions are answered. Do not be afraid to ask for tax records and notarized profit/loss statements, the person recruiting you is presenting this as a legitimate business opportunity so you should evaluate it as one.

    If they refuse to answer your questions or try to give evasive answers it is probably not a legitimate opportunity.
    Or, if the person you're speaking to is quite new, ask them to go upline to get your questions answered. That's what uplines are for.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  3. #3
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    Or, if the person you're speaking to is quite new, ask them to go upline to get your questions answered. That's what uplines are for.
    That is why the FTC advises "If you cannot get answers to all your questions from the person recruiting you get the contact information from someone in the MLM who can answer all your questions."

  4. #4
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by dank111 View Post
    That is why the FTC advises "If you cannot get answers to all your questions from the person recruiting you get the contact information from someone in the MLM who can answer all your questions."
    That’s how it works when done properly, the FTC is telling us nothing new. When I sponsor someone, I do the work with the new person and part of that work is answering their questions. If there is a question I can’t answer I will go upline and get it answered for them. This is how it’s worked since MLM began decades ago.

    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  5. #5
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    That’s how it works when done properly, the FTC is telling us nothing new. When I sponsor someone, I do the work with the new person and part of that work is answering their questions. If there is a question I can’t answer I will go upline and get it answered for them. This is how it’s worked since MLM began decades ago.

    Looks like we agree, if you cannot get answers in writing and certified income statements from someone in an MLM when they try and recruit you it is probably a scam.

  6. #6
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by dank111 View Post
    Looks like we agree, if you cannot get answers in writing and certified income statements from someone in an MLM when they try and recruit you it is probably a scam.
    FTC don’t want people using income statements, certified or otherwise, haven’t you seen the latest cases?

    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  7. #7
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    FTC don’t want people using income statements, certified or otherwise, haven’t you seen the latest cases?

    Most importantly, don't listen to Chris Doyle. He lies and deceives anyone and anything to promote MLM.

    That would be great advice for avoiding an MLM scam!
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  8. #8
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by Joecool44 View Post
    Most importantly, don't listen to Chris Doyle. He lies and deceives anyone and anything to promote MLM.

    That would be great advice for avoiding an MLM scam!

    Posting in big text will do nothing for you coolio because no one listens to you anyway.

    MLM is going to see a great future because President Trump is in charge now.

    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  9. #9
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    Posting in big text will do nothing for you coolio because no one listens to you anyway.

    MLM is going to see a great future because President Trump is in charge now.

    Betsy Devos didn't have such a good showing yesterday.

    https://www.washingtonpost.com/news/...=.6b05ae2d0817

    Betsy DeVos was asked a question by Sen. Al Franken (D-Minn.) about an important education debate involving how student progress should be measured. The query essentially rendered her speechless as she appeared not to know how to answer. When Franken told her he was upset she didn’t understand it, she did not protest.

    That was just one of several moments during the hearing in which DeVos either displayed a lack of knowledge about education fundamentals or refused to answer questions
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  10. #10
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    FTC don’t want people using income statements, certified or otherwise, haven’t you seen the latest cases?

    The FTC has said they do not want any unsubstantiated income claims. Answering a question with documentation is perfectly legal and proper.

  11. #11
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by dank111 View Post
    The FTC has said they do not want any unsubstantiated income claims. Answering a question with documentation is perfectly legal and proper.
    We teach never to make any financial claims whatsoever, it’s much safer that way and when we explain why we do it this way, we find people are impressed that we are trying to get away from the old days of hype. You will NEVER see a financial claim about our company on any literature or the internet, I regularly search to make sure.

    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  12. #12
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    We teach never to make any financial claims whatsoever, it’s much safer that way and when we explain why we do it this way, we find people are impressed that we are trying to get away from the old days of hype. You will NEVER see a financial claim about our company on any literature or the internet, I regularly search to make sure.

    LOL. You keep referring to "we". The fact that you can't even name your company just displays that you're full of it.

    Naming your company would prove beyond a doubt that your statements are lies.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  13. #13
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by Joecool44 View Post
    LOL. You keep referring to "we". The fact that you can't even name your company just displays that you're full of it.

    Naming your company would prove beyond a doubt that your statements are lies.

    Of course I can name my company, but why would I just to please you?

    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  14. #14
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    Of course I can name my company, but why would I just to please you?

    You don't because it would demonstrate beyond a doubt that you are lying.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  15. #15
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by ChrisDoyle View Post
    We teach never to make any financial claims whatsoever, it’s much safer that way and when we explain why we do it this way, we find people are impressed that we are trying to get away from the old days of hype. You will NEVER see a financial claim about our company on any literature or the internet, I regularly search to make sure.

    You are confusing making unsubstantiated income claims with answering a direct question from a prospect and providing documentation. The FTC says to ask for income information from the person trying to recruit you and to get it in writing. The FTC is saying to do this so they have no issues with providing documented income disclosures.

    If the person recruiting you will not provide this information the FTC says it is more than likely a scam.

  16. #16
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    Re: Advice for avoiding MLM scams

    Quote Originally Posted by dank111 View Post
    You are confusing making unsubstantiated income claims with answering a direct question from a prospect and providing documentation. The FTC says to ask for income information from the person trying to recruit you and to get it in writing. The FTC is saying to do this so they have no issues with providing documented income disclosures.

    If the person recruiting you will not provide this information the FTC says it is more than likely a scam.

    Well, as a company we don’t do it, even though it would be quite possible to do it, for example, my sponsor, their sponsor and their sponsor each earn 5 and 6 figures per month, but we all don’t do the cheque waving thing. What we can do is show how the compensation plan works, which is a much better way of doing it without any earnings claims at all. So no earnings claims means that it’s impossible to be in trouble with the FTC on that particular subject.

    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

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